Kirin sells less and reduces goals in Brazil

After closing the results of the first half of this year, the Japanese Kirin Holdings reduced the operating profit and revenue estimates of its subsidiary Brazil Kirin (ex-Schincariol) for 2014. The initial projection was an operating gain of 11.9 billion yen (approximately US $ 260 million) this year. The new estimate of 7 billion yen (about US $ 152 million).
For the recipe, the new growth projection in Brazil is 15.7 percent this year, compared with last year, to 206.2 billion yen (approximately US $ 4.5 billion). Earlier, the company predicted a high of 21%.
The Kirin reported that the volume of beers and soft drinks sold by Kirin Brazil retreated in the first half as compared to the same period last year. Despite this, the company's revenue increased 5.1 percent to 88.3 billion yen ($ 1.9 billion), with the help of price adjustments implemented last year.
The operating loss of the Kirin Brazil decreased from 4.2 billion yen to 3.9 billion yen, in the comparison between the first semester of last year and this year.
The parent company of Brazil Kirin cited the pace of moderate growth of the Brazilian economy and high competitiveness in the market of drinks as factors that explain the fall in sales volume.
The competitor Ambev reported in July that its sales volume of beer increased by 9.1% in the first half, compared to the previous year, while net revenue grew 16.3% category. Ambev has sponsored the World Cup in Brazil and had exclusive rights to sell its beers Budweiser and Brahma in the stadiums and at parties Fan Fest, organized by Fifa. The volume of soft drinks like Guarana Antarctica and Pepsi grew 5.4 percent in the same comparison, with high of 10.2% in revenue.
The Kirin stated that continues building a strong brand portfolio "and striving to maximize the presence of its main beer brand, the Schin. In soft drinks, the company said it has adopted measures to strengthen the soft drinks brand that expanded the territory and Schin sales Fibz brand, launched in the country last year.
The net profit of Kirin Holdings fell 76 percent in the first half, compared to the previous year to 14 billion yen (about US $ 138 million). Net revenues declined 3.6%, to 1.05 trillion yen ($ 10.4 billion), with falls in the liquor business in Japan and on pharmaceutical division. Beverage revenue in other regions, including Brazil, rose 2.7%.